On May 15,2020, Senators Wiener and Gonzalez revised their proposed legislation which sought a temporary moratorium on commercial evictions. The revised bill includes the following provisions:
The bill prohibits the eviction of tenants of commercial property and stops all such action that began on or after March 4th, 2020 through the duration of the state of emergency.
If a tenant does not pay rent during the state of emergency, the sum total of that rent shall be due 12 months after the state of emergency ends, unless the tenant has reached an agreement with the landlord to pay at a later date.
The bill adds protections for specific "commercial tenants" that it defines as small businesses, eating and drinking establishments, places of entertainment, and performance venues. It excludes publicly traded companies or their affiliates.
If a commercial tenant experiences a monthly revenue decline of 40% or more as compared to January and February of 2020 or to the same month in 2019, or if an eating and drinking establishment, place of entertainment, and performance venue must reduce capacity by 25% or more due to physical distance requirements, then, the tenant may notify its landlord of its desire to negotiate a rent reduction.
If the parties are unable to reach an agreement within 30 days, then within 10 days thereafter, the tenant may terminate the lease without future liability.
Upon Termination, the tenant must pay the rent previously due in an amount no greater than the sum of: (i) up to 3 months worth of the past due rent incurred during the state of emergency, and (ii) all rent incurred and unpaid during a time unrelated to COVID-19 through the date of termination.
The tenant must vacate within 14 day and pay the due rent within 12 months.
If you want your voice to be heard on these bills, we strongly encourage individuals to contact their state senators. Contact information can be found here: http://findyourrep.legislature.ca.gov/
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